Real wage rigidities and disinflation dynamics: Calvo vs. Rotemberg pricing

Guido Ascari and Lorenza Rossi

Economics Letters, 2011, vol. 110, issue 2, 126-131

Abstract: Calvo pricing implies output gains, while Rotemberg pricing implies output losses after a disinflation. Introducing real wage rigidities has opposite effects: it generates a long-lasting boom in output in Calvo, and a moderate output slump in Rotemberg.

Keywords: Disinflation; Sticky; prices; Real; wage; rigidity; Non-linear; simulations (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (19)

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Working Paper: Real Wage Rigidities and Disinflation Dynamics: Calvo vs. Rotemberg Pricing (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:110:y:2011:i:2:p:126-131

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